# Distribution

The distribution of ZWAP tokens began on **3 February 2021, 16:00 UTC+8** and its distribution mechanism was outlined with 2 key stages to users who benefit from the protocol. 

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The total supply of ZWAP tokens is 1,000,000.
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## Stage 1: Retroactive Airdrop

This stage distributed tokens to early users, testers, and builders who tried and tested the protocol prior to 18 January 2021, 18:00 UTC+8. To reward them for their contribution, these users were eligible to retroactively claim ZWAP tokens from **5% of the total token supply**. Of these 50,000 ZWAP tokens, 15% of the tokens were allocated to developers as a retroactive reward and distributed in a monthly token release over 12 months. The remaining 85% were split between traders and liquidity providers and could be claimed when the token was released on 3 February 2021.

| User Types              | %   | Weight                                         |
| ----------------------- | --- | ---------------------------------------------- |
| **Traders**             | 20% | Weighted by volume traded in ZIL               |
| **Liquidity providers** | 80% | Weighted by time and liquidity provided in ZIL |

## **Stage 2:** Lightning Liquidity Mining Programme (Ongoing)

Since 3 February 2021, 16:00 UTC+8, the remaining **95% of the $ZWAP token supply** has continuously been distributed to key stakeholders of the protocol — liquidity providers and developers. Over a period of 152 weeks. 6,250 ZWAP tokens will be released weekly with the following allocation: 

* **Developers of the protocol (15%)**: this fund is committed towards the future development of the ZilSwap ecosystem including but not limited to development and partnerships
* **Liquidity providers (85%)**: according to approved pool weight, and time-weighted liquidity in ZIL. This means that users will receive ZWAP rewards proportional to the pool weight and the duration that they have contributed liquidity for.

For a list of eligible pools, please visit [zilswap.io/pools](https://zilswap.io/pools). 

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More pools can be allocated rewards in the future through a governance vote.
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### How are rewards distributed?

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The following section is for illustrative purposes only.
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**To better understand how rewards are distributed, we will use a scenario with the following three pools and weights:**

1. XSGD/ZIL: 20% (2x weightage)
2. gZIL/ZIL: 30% (3x weightage)
3. ZWAP/ZIL: 50% (5x weightage)

Let’s assume the total rewards distributed in the first week is $1,000. The three pools will receive $200 (20% x $1000), $300 (30% x $1000) and $500 (50% x $1000) respectively. Rewards for each pool will then be distributed to liquidity providers pro-rata by their share of contribution to the pools and how long they have provided liquidity for.